Reviewing MGM Resorts International (NYSE:MGM) and Life Time Group (NYSE:LTH)

MGM Resorts International (NYSE:MGM) and Life Time Group (NYSE:LTH) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings & Valuation

This table compares MGM Resorts International and Life Time Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$17.54 billion	0.48	$205.86 million	$2.63	12.55
Life Time Group	$3.00 billion	3.55	$373.67 million	$1.84	25.74

Life Time Group has lower revenue, but higher earnings than MGM Resorts International. MGM Resorts International is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MGM Resorts International and Life Time Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	3.92%	20.58%	1.69%
Life Time Group	12.72%	11.01%	4.36%

Risk and Volatility

MGM Resorts International has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Institutional and Insider Ownership

68.1% of MGM Resorts International shares are held by institutional investors. Comparatively, 79.4% of Life Time Group shares are held by institutional investors. 3.4% of MGM Resorts International shares are held by insiders. Comparatively, 13.3% of Life Time Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for MGM Resorts International and Life Time Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	4	7	9	2	2.41
Life Time Group	0	1	15	0	2.94

MGM Resorts International currently has a consensus price target of $44.29, indicating a potential upside of 34.25%. Life Time Group has a consensus price target of $56.14, indicating a potential upside of 18.54%. Given MGM Resorts International’s higher probable upside, equities analysts plainly believe MGM Resorts International is more favorable than Life Time Group.

Summary

Life Time Group beats MGM Resorts International on 10 of the 15 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International is a global hospitality and entertainment company that develops, owns and operates resorts featuring casinos, hotels, restaurants, live entertainment, meeting spaces and other leisure amenities. Its portfolio includes well-known Las Vegas properties as well as resorts in other U.S. markets. The company also has a presence in Macau through its MGM China subsidiary, which operates integrated resorts including MGM Macau and MGM Cotai. MGM Resorts offers online sports betting and gaming through BetMGM, its digital gaming brand.

About Life Time Group

Life Time Group Holdings, Inc. operates a network of fitness and wellness clubs in the United States and Canada. Its locations combine fitness facilities with services and amenities such as group exercise classes, personal training, swimming, racquet sports, spa services, and dining. The company also offers digital fitness and wellness content through its app and other platforms, complementing its in-person club services. Its clubs are designed to serve individuals and families with a range of fitness, recreation, and wellness programs.